Bed Bath & Beyond lives on!(line). Overstock.com buys rights to bankrupt retailer and changes name

Overstock.com has come to the rescue of the struggling retail chain Bed Bath & Beyond by acquiring its intellectual property assets for $21.5 million. As part of the deal, Overstock.com will undergo a name change and rebrand itself as Bed & Bath & Beyond, aligning with the recognizable brand.

Overstock.com’s CEO, Jonathan Johnson, expressed the company’s intention to potentially change its corporate name but emphasized that no decisions would be made until they fully integrate the acquired assets. This move received a positive response on Wall Street, with Overstock.com’s shares surging nearly 20% during afternoon trading.

It’s important to note that the agreement does not include Bed Bath & Beyond’s physical stores, which are expected to close by the end of this week, nor does it include the Buybuy Baby chain.

The transition to the new name will begin in Canada next month, followed by a relaunch of the company’s website and mobile app as Bed Bath & Beyond in the United States. Visitors to overstock.com will be automatically redirected to bedbathandbeyond.com.

Overstock.com initially started as a liquidator in 1999 but evolved into a general merchandise retailer in 2004. In 2021, the company refined its strategy to focus on furniture and home decor, discontinuing product categories like clothing. However, the name “Overstock” often confused customers and suppliers who associated it with a liquidation business.

Overstock.com previously attempted to engage Bed Bath & Beyond’s suppliers when the retailer faced financial difficulties. However, skepticism hindered their efforts until their bid for Bed Bath & Beyond became public last week. This acquisition allowed Overstock.com to incorporate 100,000 bed and bath items into its inventory, with expectations of further expansion.

To accommodate loyal Bed Bath & Beyond customers, Overstock.com plans to offer coupons and enhance marketing efforts to ensure a smooth transition. Johnson mentioned that while customers may be familiar with Bed Bath & Beyond’s popular perks, they will be pleasantly surprised by Overstock.com’s everyday discounts, which are even more appealing. Overstock.com currently serves around 5 million customers, while Bed Bath & Beyond boasts approximately 10 million online customers.

Bed Bath & Beyond, once renowned as a leading big box retailer with a vast selection of home goods, filed for bankruptcy protection in April. After years of struggling sales and unsuccessful attempts to revitalize the business, the company’s financial troubles prompted the need for external intervention.

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